Rabu, Mac 26, 2008

In today's rapidly changing globalized business environment, people are considered to be strategic assets that ensure competitive advantage for an Organization. Senior management rely on intangibles as the key profit lever and primary source for long-term advantage over the firm's competitors. In most of the Organizations, people are not considered as an overhead cost to be cut but rather profitable investment as long as motivated, developed and rewarded via value added, responsive and aligned HR practices. That modern theory of business management puts management of people in the first place as importance and addresses as an imperative, challenging issue in this competitive environment.

The above mentioned and generally accepted view requires a new perspective on what is meant by HR function in the Organization, and a new understanding of how HR creates value in the Organization. This also requires an evolutionary change. Can HR respond on that change? Didn't HR arrive there yet? What should be done ?

These questions and many others are asked frequently and answers are trying to be uncovered within scholars of Human Resources Management (HRM). In this essay, my intent is not to give so detailed theoretical explanations neither on HRM history nor on Strategic Human Resources Management (SHRM). But rather providing some facts based on survey reports, on reputable authors' implications and on my personal synthesis about how to achieve this new vision for HRM.

Defining SHRM

We are all aware that in recent years, the field of human resources experienced an evolutionary change with a revolutionary speed. In the past, HR was heavily responsible for personnel and administrative activities. But today, although it still faces considerable barriers, HRM has started to get rid of its crust and involved on more strategic issues extensively over the last twenty years.

But, attaching the prefix "strategic" does not make you strategic in just one blink. It is a long-term process. Why?

It is just simply because strategic means value added activities that differentiate you from your competitiors and have significant impact to the overall business results of an Organization. The term derived from the most acclaimed concept "strategy". And the strategy may be defined as performing similar activities different than or performing different activities than your competitors do.

You see... As long as you relate to strategy related terms, you will face common concepts: differentiation, value adding, innovation and so on. That's why SHRM can be described as a long and a severe road but also a road if not used will let you out of the competition. From this moment now, it is up to HR professionals' vision whether to sail away from their safe harbor and respond to that challenge or not.

Before going further, let's look at some notable examples of SHRM definitions which i'm sure will let us understand the concept and the philosophy behind it:

The pattern of planned HR deployments and activities intended to enable the firm to achieve its goals,

The process of taking a long-term approach to HRM through the development of HR systems, processes, policies that address and solve business problems and directly contribute to major long-term business objectives,

The linking of people with strategic goals and objectives in order to improve business and develop organizational culture that foster innovation and flexibility,

Acceptance of HR function as a strategic partner in the formulation and in the implementation of company's strategies through HR activities,

The process of linking HR practices to business strategy,

The process by which Organizations seek to link human, social and intellectual capital of their members to the strategic needs of the firm.

Many other descriptions can be found in various sources of information. But, still some question marks may stick in your minds, like for example: at what level is the applicability of Strategic HR Management in the Organizations? Is it irrelevant with the realities of the business world? Is it just a myth or a reality?

Let's try to find out some solutions to those reasonable question marks...

Is it myth or reality?

Strategic HR is not a title that is given to any of HR departments. For example, have you ever encountered with Strategic HR Director/Manager/Supervisor? I don't know about your answer but i didn't that's for sure. As i have tried to explain above that, what makes you strategic is the value added HR activities aligned with corporate business plans. It is not because of the fashion you will be recognized as strategic. Well that intangible side of SHRM makes people think inaccessible and let them see this new way of thinking for HRM as a "myth".

You can see many lecture, certificate programs in most of the leading universities of the world covering Strategic HR Management issues. There are millions of pages on the web and thousands of books on that subject covering the linkage between HRM and business strategies and how to reach there in real business life. All of these scholars, management authorities and thinkers can not be wrong at the same time. Well, if you still think that SHRM has nothing to do with real life and can never be achieved, than i should say that you are not pushing hard enough to get there and feeling much comfortable on your safe chair by just doing what it is said to you.

Society for Human Resources Management conducts every year SHRM survey in US via online questionnaire. In 2006, they have collected data from 427 HR professionals in US regarding Strategic HRM practices in their Organizations. According to some dramatic results;

56% of respondents reported that their HR department had a strategic plan, out of this 96% were aligned with corporate strategic business plan.

The majority (59%) of the respondents felt that employees perceived their HR departments as mainly having an operational role.

89% of the respondents indicated that HR could contribute to a large extent through employee relations.

68% stated that HR works closely with senior management in implementing corporate strategies.

Less than half of the population (47%) responded that senior management has come to accept and realize their investments in HR make financial sense.

The major barriers that HR professionals encounter with; 86% of respondents felt that their departments are focusing on administrative duties, 78% not able to directly measure HR's impact on bottom line and lacks an established method, 63% has limited involvement with board of directors.

As you can see from the survey findings that HR professionals still faces considerable barriers like focus on administrative issues and lack of measurement. Another finding that should be highlighted that HR is focused more on implementation than on the creation of corporate strategic business plans. These were key observations that let us see that we all have some more way to reach fully strategic HRM in our Organizations. I am sure that in the rest of the world, the overall picture is similar or worse than it is in US.

Astonishing similarity that i saw between Jac Fitz-Enz' interviews and the above mentioned survey fndings about the barriers or the perception of employees. In 1990, Fitz-Enz asked more than 1.200 line managers from US, Brazil, Canada, Australia, Denmark, France and South Africa, three strongest images that they have of the HR function in their company. The responses were similar to that of Society for HRM's survey;

HR is too costly (401 respondents);

It doesn't add value (287 respondents);

It's bureaucratic (184 respondents);

We can do it ourselves (163 respondents);

They don't know the business (118 respondents).

Roadmap for SHRM

From 1990 to 2006, two different set of findings similar in nature can be seen above. Only these two instruments are enough to understand how slowly that change in HR function is happening and how that change is a must for managing people as strategic assets within the Organization.

Strategic Human Resource Management is neither a myth nor a mission impossible for HR professionals. It is a long-term process not a "me-too" exercise. It must be considered as a new vision, a new roadmap for every HR department. In order to be succesful on this long journey;

Be one of the members in creation process of Corporate Strategic Business Plans,

Establish an HR vision and communicate it not only to HR Department, but to all employees,

Be the pioneer of Human Capital Management by facilitating change, developing your people,

Show by figures the impact of your work by HR metrics and benchmark with your competitors.

These highlights may seem almost hard to accomplish in some of the Organizations, but never should be considered as unachievable ones. I strongly do believe that HR must re-position itself and choose a new way towards the quest for SHRM. Success will come sooner or later...

Ahad, Januari 13, 2008

SYED SHAHIR Syed Mohamud was a late bloomer. He only began talking when he was four. But he has not stopped talking since. `When I was 13, I asked an ustaz what my name meant. He said it meant famous in Arabic. He then told me he did not know whether I would be famous,' recalls Syed Shahir. Syed Shahir has certainly lived up to the meaning of his name. The President of Malaysian Trades Union Congress (MTUC) since 2004, he has earned the ire of the government with his persistent calls for a minimum wage for workers to be set at RM900, the cost-of-living allowance (COLA) for private sector workers to be set at RM300 and for the union's strong stand against toll price hikes.

This year saw MTUC organising two protests demanding the government to set a compulsory monthly minimum wage of RM900. The second protest in early August saw 30,000 workers all across the country joining in the protest. MTUC also protested against toll price hikes, which saw opposition parties coming out and supporting the union in its cause. Besides this, Syed Shahir was also very vocal about the privatisation of water and was against the government's move to privatise health care. All this caused the government to see red and led the Deputy Human Resource Minister Datuk Abdul Rahman Bakar to warn in Parliament that MTUC and other unions would be deregistered if they became tools of the opposition in its attempt to overthrow the government. Added to this, Syed Shahir's affiliation with Parti Keadilan Rakyat (PKR) has also come under public scrutiny. There have also been rumblings within MTUC over some members' unhappiness over the confrontational stand being taken by MTUC under Syed Shahir's leadership.

`It's not that we want to have a confrontation with the government. If the issue, especially the minimum wage one, can be resolved in an amicable manner, of course we would want that. But you can't simply be talking about an issue without seeing any results, or without getting any reaction from the other side,' clarifies Syed Shahir in his sonorous voice. `We want to see some results that will benefit the workers.'

As for his political affiliation to PKR (he was a member of Parti Sosialis Rakyat Malaysia (PSRM) and contested in the 1972 general election under the party's banner. When the party merged with Keadilan and became Parti Keadilan Rakyat (PKR), Syed Shahir stayed on with the new party. He contested in the 2004 general election under the PKR banner), he says that all MTUC members are free to choose which party they want to belong to. `MTUC has a membership of half a million. Not all of them belong to one party; there are people who belong to UMNO, MCA, MIC, PAS, DAP, etc. We cherish this diversity - that's what democracy is all about, the freedom to choose who you want to support.' He also stresses that although MTUC members might belong to different political parties, when it comes to meetings with the employers over any issues, their agenda is the same, which is to work towards the interest of the workers.

He points out that union leaders being active in politics is not something new in Malaysia. Former unionists like the late Ahmad Noor and Dr V David had served as elected MPs under the Democratic Action Party (DAP). As for his own political ambitions, he says it depends on circumstances and the support among his party colleagues. `If they feel they need me to voice out the concerns of the people, then I will; if not I won't contest.'

His long-time friend and fellow unionist Gopal Kishnam says that Syed Shahir is one of the most trustworthy persons he has ever met. `He will never use MTUC to further his political career. MTUC has members who belong to Barisan Nasional component parties as well but they support Syed Shahir and MTUC in its struggle,' says Gopal, who is the general secretary of the National Union of Transport Equipment and Allied Industry Workers (NUTEAIW).

Syed Shahir's interest in politics started while he was still in his early teens in his hometown of Raub, Pahang. He was an unusually mature young boy, thanks to his insistence in hanging out with people who were older than him, he says.

The young Syed Shahir also attended election rallies to hear the politicians speak. Although he did not fully understand all the issues that were discussed, he loved the atmosphere of the rallies and was attracted by the eloquence of some of the speakers.

He also became a voracious reader and developed a deep love for history. After he left school, he did a number of odd jobs, did his Sixth Form privately and became a temporary teacher. He later got a job in the civil service but left soon after to compete in the general election of 1974 under PSRM. He was not yet 22 then. His family was not very happy that he was running in the election and under the opposition banner at that. Syed Shahir lost. `But I did not lose my deposit. In fact, I got more than one- third of the total vote,' he adds.

He drifted to Kuala Lumpur and finally joined MTUC in 1975 and has been there ever since. `Over the years, he had several job offers that offered much better prospects but he rejected them all because of his commitment to the workers' cause,' reveals Gopal. `No one can doubt his sincerity and dedication; he always has the workers' interests at heart. I sincerely hope he will lead the MTUC for the next couple of years.'

Since Syed Shahir became the president of MTUC - and that too after contesting for the post four times; he won on his fifth attempt - he has faced many challenges. He says trying to get the government to agree on a minimum wage is his biggest yet. Then, there is the threat of degeristration of MTUC because of its alleged left-wing leanings.

When asked about this, Syed Shahir counters that it is a diversion from facing the real issues that challenge workers such as minimum wages and COLA, to name a few. `MTUC is not a one-man show. All the decisions made here are through dialogues, meetings. We cannot stop any political parties, whether it's the ruling party or the opposition, from supporting our cause. We cannot be blamed if the opposition supports our view. When we protested the toll hike and picketed for the minimum wage, they came to show their support. The government sees this as proof that we are the tools of the opposition.'

Syed Shahir stresses that the workers' concerns are MTUC's concerns and toll and the privatisation of public services comes under this as well. `Workers pay toll, they use water and medical services. If the government says it can no longer subsidize public services like health, etc, it has serious implications for people from the lower income group. There are more than 1.2 million people earning less than RM700 a month. We have a situation where people are borrowing money from loan sharks and are over- dependent on credit cards because they can't make ends meet ... is it wrong to point out all these things? Does this mean if we criticize the government over this we are for the opposition? Even MTUC members who are in UMNO are feeling the pinch of the toll hikes. Does that mean if they protest against the toll hike that they are against UMNO?' he fumes.

Another challenge that Syed Shahir faces now is the prospects of a rival workers' union, Persatuan Pekerja Islam Malaysia (PPIM), being approved by the Registrar of Societies. If it is approved, then it will be the first labour organisation based on religious lines in Malaysia. Syed Shahir is not amused by this situation. `I still maintain that it is an attempt by the government to split the labour movement,' he retorts. `This does not augur well for the future of labour unions in this country. What next? Malaysian Hindu Labour Organisation, Chinese Labour Organisation? We have to allow all these organisations as well. The government talks about unity, solidarity and then it does this! We have enough "disunity" among us as it is, thanks to the various political parties that divide us along racial lines.

`I really don't know what the agenda of the PPIM is. They say that we are not championing the cause of Muslim workers. Isn't minimum wage, rights of workers, fair treatment of workers the cause of Muslim workers as well? he says passionately.

Syed Shahir has his devoted friends. `He is always the victim of vast amounts of slander and malice,' says his close friend of over 30 years, Zulkifly Baharom, who is in the General Council of the Malaysian Institute of Management. `Yet, he is immensely popular with family members, friends and union members. He is trusting and compassionate and yet he can be demanding and tough,' says Zulkifly. He considers himself truly blessed `with a trusted friend who is an intellectual, a thinker, a teacher, a caring husband and father, a professional manager, a charismatic orator and a leader par excellence all rolled into one.'

Syed Shahir himself admits that there are times when he feels like throwing in the towel. `But when I get a complaint from a worker that he has not been paid or he has not been treated justly, the injustice of it all riles me. It's the injustice around me - the rich exploiting the poor, the uneven distribution of wealth, the exploitation of the workers - that keeps me going. You cannot just close your eyes to it.'

The Industrial Court has ruled that workers should be able to use office e-mail to gossip about their bosses, and even use derogatory language, without fear of being sacked.It made the ruling in upholding a secretary's complaint that she had been wrongly dismissed for using office e-mail to criticise her managers, describing some of them to colleagues as a "blur"."The court's view is that it is quite common and natural for staff to gossip about their superior officers," Court Chairman Syed Ahmad Radzi Syed Omar said."It can happen anywhere and anytime, especially when there is a gathering. It could be over coffee or tea or a meal; in this case, in e-mail between friends." The court ordered the employer, Malaysia National Insurance Bhd, to pay the Secretary compensation of RM66,850.Her e-mails were discovered after the Secretary was investigated over the leaking of a confidential report of a board meeting.- Reuters